USD/CAD Price Analysis: Struggles around two-week-old resistance trendline
|- USD/CAD struggles to extend the latest gains after comments Alberta’s Premier Jason Kenney.
- 61.8% and 50% Fibonacci retracement levels can entertain sellers ahead of 1.4010/05 support confluence.
- An upside beyond Thursday’s top will renew the buying.
Despite trading near three-week high, USD/CAD struggles with the short-term falling trend line while taking rounds to 1.4135 during the early Asian session on Tuesday.
Read: Alberta’s Kenney: Federal government should take more action on oil prices
While the pair’s sustained trading beyond 61.8% Fibonacci retracement of its April 05-13 fall portrays its strength, Thursday’s high near 1.4185 acts as an additional upside barrier beyond the said trend line resistance, currently near 1.4145.
Hence, sellers can’t lose the hope unless USD/CAD prices rally beyond 1.4185. Following that, buyers can aim for the monthly high surrounding 1.4260.
On the downside, 61.8% and 50% Fibonacci retracement levels, respectively around 1.4105 and 1.4060, remain on the bears’ radars.
However, a confluence of 200-HMA and 38.2% Fibonacci retracement near 1.4010/05 could question further downside.
USD/CAD hourly chart
Trend: Pullback expected
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